Claim your 45L energy tax credits
Blue Energy’s team provides audit-proof Energy Star certifications for homebuilders and residential developers so you can obtain the Section 45L tax credits you deserve.
Section 45L tax credits
The Section 45L residential energy efficiency tax credit was overhauled by the Inflation Reduction Act (IRA). For all houses and multi-family units sold or leased after January 1, 2023, the maximum credit for 45L is $2,500 for Energy Star construction and $5,000 for Zero Energy Ready construction.
Single Family Construction
For single family homes, duplexes, townhomes and even manufactured homes, there is no prevailing wage and apprenticeship requirement to meet in order to maximize the 45L tax credit.
- Energy Star certified homes receive a $2500 tax credit
- Zero Energy Ready certified homes receive a $5000 tax credit
Multifamily Construction
For multifamily homes such as apartments, credits vary based on both energy standards and adherence to the prevailing wage and apprenticeship (PWA) requirements:
- Energy Star certified units receive a base tax credit per unit of $500
- Energy Star certified units that meet the PWA requirements receive a tax credit per unit of $2500
- Zero Energy Ready certified units receive a base
- tax credit per unit of $1000
- Zero Energy Ready certified units that meet the PWA requirements receive a tax credit per unit of $5000
For all homes including multifamily homes the tax credit is calculated per unit. That means one Energy Star certified 20-unit apartment building, for example, could be eligible for either $10,000 or $50,000 in tax credits. If that building is certified for Zero Energy Ready and meets the PWA requirements it would be eligible for $100,000 in tax credits.
Certification Process
For all homes a detailed energy analysis must be provided by a certified home energy rater, using IRS-approved software. Two on-site inspections will be required – one prior to drywall being installed and the other at the completion of the home. Blue Energy has a team of certifiers on staff that will help you navigate the Energy Star requirements and perform these inspections in a timely manner so that your project stays on track.
Next Steps
Our certification process carefully follows all IRS and Energy Star guidelines so that our clients can be sure that they are receiving an accurate certification. If you would like more information or would like to take advantage of our complimentary feasibility study, please contact us today.